The South African Post Office SAPO is setting its sights firmly on the lucrative courier and delivery market in a bid to transform its financial fortunes.
Presenting a strategic plan to Parliament, the financially troubled SAPO announced ambitious goals to increase its revenue significantly by 2029, aiming to drive more than 25 of its income from the parcel and courier sectors.
Currently projected to generate approximately R1.9 billion in revenue for 2024, SAPOs growth strategy outlines a bold leap to R5.2 billion by 2029. Achieving this will necessitate a complete restructuring of its revenue model, with a dual focus on expanding both digital offerings and its courier and parcels business.
As SAPO pivots its operations, it anticipates a decline in traditional postal services, with bulk, franking, and registered mail expected to drop by between 5 and 7 annually unless substantial modernisation and digitisation efforts are implemented.
In a reversal of fortune, the public postal service envisions capturing 5 of the Business-to-Business B2B and Business-to-Consumer B2C delivery market while scooping up about 25 of the Consumer-to-Consumer C2C market within the next five years.